Multiple Choice
For a market with a linear demand curve and constant marginal cost of production, why are the reaction functions for the Cournot duopoly sellers also straight lines?
A) The reaction functions do not have to be straight lines, and they are only drawn this way in the book to keep the figures simple.
B) Cournot thought the lines would be straight, but this was proven wrong by other economists.
C) Marginal revenue is always linear when marginal costs are constant.
D) We know that the marginal revenue curves for linear demand curves are also straight lines.
Correct Answer:

Verified
Correct Answer:
Verified
Q26: In which oligopoly model(s) do firms earn
Q27: Cartels can more easily detect cheating by
Q28: A market structure in which there is
Q29: If all producers in a market are
Q30: Refer to Scenario 12.3. Suppose that the
Q32: Which of the following is true in
Q33: A _ shows how much a firm
Q34: What is the potential drawback if firms
Q35: In a Cournot duopoly, we find that
Q36: Which one of the following statements is